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Dollar edges higher after ADP, Greece swap in focus

Published 03/07/2012, 10:52 AM
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Investing.com - The U.S. dollar edged higher against its major counterparts on Wednesday, as investors looked ahead to Thursday’s deadline for a Greek debt swap deal and after upbeat U.S. jobs data.
 
During U.S. morning trade, the dollar inched higher against the euro, with EUR/USD dipping 0.05% to hit 1.3106.
 
A report by U.S. payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 216,000 in February, beating expectations for an increase of 205,000.

The previous month’s figure was revised up to a gain of 173,000 from a previously reported increase of 170,000.
 
Meanwhile, investors remained wary ahead of Thursday’s deadline for Greece’s private creditors to sign up to a bond swap deal, which is aimed at writing down 53.5% of the country's EUR177 billion debt.
 
A participation rate of more than 75% of creditors is required for Greece to secure a EUR130 billion bailout in order to avoid a default when a bond repayment due on March 20.
 
Sentiment on the euro was dented earlier after official data showed that German factory orders fell unexpectedly in January.

The greenback also pushed higher against the pound, with GBP/USD slipping 0.06% to hit 1.5705.

Elsewhere, the greenback was almost unchanged against the yen and inched higher against the Swiss franc, with USD/JPY dipping 0.01% to hit 80.88 and USD/CHF easing up 0.04% to hit 0.9191.

Earlier in the day, the Swiss National bank said that its foreign currency reserves fell to CHF224.9 billion in February from CHF229.4 billion the previous month.

The data came after a report showing that the Swiss unemployment rate held steady at 3.1%for the third consecutive month in February.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD losing 0.05% to hit 1.0011, AUD/USD sliding 0.11% to hit 1.0539 and NZD/USD climbing 0.54% to hit 0.8166.

Official data showed earlier that Australia’s economy expanded by a seasonally adjusted 0.4% in the last three months of 2011, disappointing expectations for a 0.7% increase.
 
In Canada, official data showed that building permits posted the steepest decline in eight months in February, dropping 12.3%, significantly more than expectations for a 2.3% decline and reversing all of the previous month’s downwardly revised 10.5% gain.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched up 0.02% to hit 79.89.
 
Also Wednesday, official data showed that U.S. non-farm productivity rose more than initially expected in the final three months of 2011, while unit labor costs jumped more-than-expected.


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